Skip to main content

tv   BBC Business Live  BBC News  January 30, 2017 8:30am-9:01am GMT

8:30 am
this is business live from bbc news with jamie robertson and sally bundock. the trump administration is standing firm over its ban on immigration from seven countries — despite court rulings and mass protests against it. business leaders worldwide are swift to react. live from london, that's our top story on monday the 30th of january. airlinesjuggle flight crew and passengers, while the tech giant google urges some staff not to leave the country — we'll find out how companies are being impacted by the us travel ban and what you should do. volkswagen has overtaken toyota to become the world's best—selling car—maker — recapturing the position it last held in 2015. and this is where the markets are,
8:31 am
they are all down, and we will explain why shortly. and cleaning up. we'll be getting the inside track on how cleaning windows and houses, doing the gardening and pet care has become big business. and what do you make of vw moving swiftly into the fast lane and unseating toyota as the world's biggest seller of cars — what is your car of choice? let us know. just use the hashtag #bbcbizlive. welcome to the programme. president trump is standing firm on his ban on immigration from seven countries — iran, iraq, libya, somalia, sudan, syria and yemen. he's also denying the measures are targeting muslims. the leaders of many global business have been swift to react — the technology firms among the first to speak out. google says it will take legal action to protect its employees. it's urging staff who could be caught up in the ban not to leave
8:32 am
the us and has more than 100 staff affected by the order. the head of tesla, elon musk, says the ban isn't the best way to address challenges the country is facing, and says he will take up industry concerns with president trump's business advisory council. emirates, one of the world's biggest long—haul carriers, has had to change flight rosters for pilots and cabin crew. while etihad, the national airline for the united arab emirates, says it's offering affected passengers the option to refund or change their flights. thank you very much, jamie. many other businesses have their comments and express their views. peter trubowitz, professor of international relations and director of the us centre at the london school of economics. this is an interesting one, an
8:33 am
executive order signed on friday, and what the ramifications have been. many big company bosses say they have tactical issues to deal with here, staff who can't get back to the us, staff who can't go on important business trips. indeed, we can see the backlash already. trump in one fell swoop has managed to galvanise the political opposition, create enemies in silicon valley and put many fellow republicans especially in the senate in a difficult place. i think many americans at this point are beginning to feel buyers remorse. trump in the last week has lost eight points in approval ratings. he already came in with low ratings, so what he is losing are people who we re what he is losing are people who were not exactly in the tank but we re were not exactly in the tank but were willing to give him the benefit of the doubt. it is hard to see how this helps him politically, and at
8:34 am
the level of policy, one has to wonder if this is more of a recruiting device than something that will depress support. —— a recruiting device for isis. that will depress support. -- a recruiting device for isis. and it is so damaging to business. what do you think businesses like google, starbucks, the rest of them, what can they do to exert political pressure? put money into the aclu. and what is that? american for civil liberties union. donations went through the roof over the weekend, apparently. the problem for them is that this was premeditated and it was announced by trump that he was going to move in this direction, and i think that many of them had kind of hoped that once he got into office, there would be more stable hands in the senate, in the congress, members of his
8:35 am
administration that would steer him in another direction, and that's not what's happening, so i think they need to express their voices more strongly. over the weekend, something that has been missed in all of this is the other executive order or presidential decision that trump made over the weekend which was to put steve bannon onto the national security council, and effectively remove the chairman of thejoint chiefs of staff and the director of national intelligence. they will come on when issues concerning front and centre. this is a big move, you have an anti—globalist, trump's chief political strategist, now at the principals' meeting. peter, i'm sure we will talk to you again in the next four years! the first 100 hours of the trump presidency, never mind 100 days. other news now: the boss of starbucks coffee says he plans to hire 10,000 refugees
8:36 am
worldwide over the next five years. it's a response to president trump's ban on immigration from seven countries. in a letter to existing staff, howard schultz wrote that the scheme would start in the united states where the focus would be on hiring immigrants "who have served with us troops as interpreters and support personnel". the us airline delta has been forced to cancel about 150 domestic flights because of what it calls "automation issues" after a "systems outage". whilst flights are now departing again, the airline says there may be more cancellations. the airline also suffered problems with its website which is now back up and running. we have got lots of stories out there today, lots of good corporate stories. we will try to touch on them. toshiba, once again shares on them. toshiba, once again shares on the move quite significantly. it just can't catch a break, say our
8:37 am
singapore team. the japanese conglomerate is said to be sued by several trust banks over the accounting scandal. shares down by some 6% in tokyo on that story. what else have we got there? the ftse down. let me get my glasses on soi ftse down. let me get my glasses on so i concede! —— can see! this picture is lured, i can't understand it. shall we move on? we can get to the ftse later! toyota has lost its four year run as the world's biggest selling car—maker — it's been overtaken by volkswagen. mariko oi is in singapore. i think ithink given i think given the scandal over volkswagen's emissions test cheating, some viewers might find this uprising, but the company did
8:38 am
quite well in china, pushing up its worldwide sales by nearly 4% from la st worldwide sales by nearly 4% from last year. toyota meanwhile really struggled from the slowdown in the united states, only managing 0.2% rise in sales, and things are not looking great for toyota in the american market under the new administration of president trump, as we have been reporting he has criticised toyota and the rest of the auto industry in his tweet, accusing tokyo of putting nontariff barriers, which tokyo denies, but business leaders are quite concerned, and it has been reported the boss of toyota will be meeting the boss of toyota will be meeting the japanese prime minister this friday ahead of the prime minister's meeting with president trump on the 10th of february. thank you very much indeed. let's have a look at these markets, all of them looking fairly negative. a lot of the sentiment affecting the markets globally is this feeling of
8:39 am
protectionism, or worry about protectionism, or worry about protectionism, that comes mainly from the united states but also there are shadows of it coming from brexit and the possibility of the ending of the uk's attachment to the single market. all of these things are beginning to worry the markets more. let's have a look at what is happening in the uk. all of them down, and not just happening in the uk. all of them down, and notjust protectionism, but worries about what is happening in the united states. the ban on the immigrants from the seven countries into the united states, even though it may be done for security reasons, has had a knock—on effect on to businesses as well, and that again is worrying the markets. let's have a look at what is going to be coming up in the day ahead in the us. lots of earnings happening this week. apple will be reporting on tuesday and it seems the revamped iphone 7 will give the tech company a real big boost. apple is forecasting an all—time record high for revenues. the social media giant facebook will be reporting earnings
8:40 am
on wednesday and for the past few quarters facebook‘s mobile ad sales have been soaring, boosting its overall growth, but back in november facebook warned that ad growth may slow. on thursday, retail giant amazon will be reporting earnings and investors will be looking to see just how profitable the holiday season was for amazon. finally, in non—earnings news, on friday we'll get the latest jobs figures. the unemployment rate is at 4.7%, the lowest it has been in years. that was sivera hussain. james hughes is with us, chief market analyst at foreign trade at gsx. it is quite an interesting week. some big names reporting, the so—called fangs, facebook, apple, netflix and
8:41 am
google. it has been quiet, chinese new year, many markets close, we only had japan and australia open today. yes, and you get that situation. sometimes you get weeks where things. off slowly and there will be a lack of data. it would give us a nice ease into the week if resident trump wasn't in the white house. but these fangs stocks are important, it used to be the big banking and oil stocks were the financial forces behind the banking and oil stocks were the financialforces behind the markets, but now we have to look to these enormous technology stocks. google was disappointing about back—end of last week, so fantastic numbers, but we look to apple, one of the biggest companies in the world, and we look towards facebook, those are two huge companies. if i am towards facebook, those are two huge companies. if! am an investor looking at the markets, do i look at
8:42 am
the macro economics, with mr trump, or do the macro economics, with mr trump, ordoi the macro economics, with mr trump, or do i look at the results coming out this week and say, i will put some money in that, and forget about him? it is a good point, because if you look at the way the markets have been rallying since november the night, there has been a lot of movement up, but the foundations of that have not been particularly there, we haven't seen too much in terms of different news which would lead it there. with donald trump in the white house at the moment, you have to macro issues. one is the fa ct have to macro issues. one is the fact that we don't know what he is going to say next or what executive order will come next. globally, you would, but from a market point of view, you wouldn't. on the other side of this, the markets are still rallying, earnings have been particularly good since the start of earnings season, google slightly missed it but we have seen good numbers. so we are very much caught at the moment, you have real
8:43 am
uncertainty, which the market hates, from donald trump, but good financial numbers which are helping boost the markets. and i understand we have the fed midweek, so what are janet yellen and her team trying to figure right? they are try to work out what on earth is going on with donald trump! should be up soon? she is poised to put the rate up soon. she told us there would be four rate hikes, and we only got one, but they are hawkish on the back of strong fiscal policy from donald trump, and the fact that the economy is doing particularly well, so with that in mind, the fed has to be pretty hawkish, but janet yellen doesn't a lwa ys hawkish, but janet yellen doesn't always go on with that. thank you very much indeed, james. we will keep an eye on her as the week progresses! she's back in the news, i have missed janet! we haven't talked about hazards before christmas. —— talked about her since
8:44 am
before christmas. still to come: getting spick and span — how cleaning, gardening and pet care can lead to a tidy profit. you're with business live from bbc news. talking of profits. the best—selling cereal brand in the uk has just announced a £30 million investment in its manufacturing plants. and that brand is weetabix, did you know that? it's going to increase capacity at its burton latimer and corby plants, as well as create 800 newjobs. giles turrell is the chief executive of weetabix, and hejoins us now. why are you doing this? we are doing it to meet the growing demand for our healthy breakfast cereals in the uk, but also to help us meet the growing demand in the markets where we export, and specifically in china, where business doubled last year. you are creating another 800 jobs, which is... i wish we were. we will be creating, our current
8:45 am
workforces around 800. my mistake. you are creating newjobs, so this is fantastic news for theresa may, saying britain is open for business. but how have you been affected by the whole brexit story with the pound and so on? the first part your question, it is about ensuring we can keep the business successful in the northamptonshire area. with regard to brexit, we have definitely seen with the weakening of sterling having an impact our business, we importa having an impact our business, we import a lot of raw materials, and naturally what this enables us to do is to continue that export. your owners are putting you up for sale. have we any news on that? they have just backed this investment, so they believe in the future of the company, and they believe in what we are trying to do in our court uk market as well as trying to... maybe they want to increase the price? i'm
8:46 am
not going to comment on rumour and speculation, i am not going to comment on rumour and speculation, iam here not going to comment on rumour and speculation, i am here today to talk about good news, which is the investment in the uk, and that will also help us expand our business internationally and the growing success internationally and the growing su ccess we internationally and the growing success we are seeing in china. buddies think the price of a box of weetabix will have to go up because of brexit? there will be an impact on our business. as our first responsibility must to be absorb that internally and we will always look to do that by running the business more efficiently and effectively. if we're unable to do that, the last resort would be to increase our cost prices. thank you for your time. lots more stories in the uk on our website. do take a look at those too. you're watching business live. our top story: the trump administration is standing firm over its ban on immigration from seven countries despite court rulings and mass protests against it. a quick look at how markets are faring.
8:47 am
we are nearly 50 minute noose a brand—new trading week in europe and sentiment is negative as you can see, but they had a fairly good run last week, european markets. so it is from a very high base. an excuse to ta ke is from a very high base. an excuse to take profits maybe. we're near the top still. it's often said that "where there's muck, there's brass". and if you wanted proof, you could do worse than look at the growth of the domestic services market. cleaning, gardening and pet care amongst the jobs increasingly being farmed out by people who are considered cash rich and time poor. one company they turn to is fantastic services, which started in 2009 by rune sovndahl and anton skarlatovand. t! has now become the uk's largest domestic services provider,
8:48 am
it has now become the uk's largest domestic services provider, and has a turnover in excess of £28 million a year, which is about $35 million. as well as operating throughout the uk, it now has expanded into europe, australia and the usa. rune sovndahl is the chief executive of fantastic services. you're danish. that would explain the name! welcome. it can be hard to pronounce. you're danish, but you have been living in the uk for a long time. presumably in the uk first? we started in london. i came here in 1999. we started in 2009. i at that stage was at and we were working on booking websites and i metanton and we grew the business out of a need. i wanted to get my deposit back on an apartment. what was the genesis of it. how did you start it? it was the
8:49 am
discussion of it and then finding out there was a general need for more clarity in the industry. like fixed prices, a stand consistent service. i came from the corporate side from and we looked a the market place and it was very fragmented when we started this seven very fragmented when we started this seve n yea rs very fragmented when we started this seven years ago. i hadn't heard of you until today. however, several collea g u es you until today. however, several colleagues here have heard of fantastic services because i did an unscientific survey in the building, but there are many companies like yours out there, i mean, many. some we have heard of like chekkatrade and so many cleaning companies, just cleaning. why do you think you're going to stand? out? we didn't compare three prices and this stuff. we wa nted compare three prices and this stuff. we wanted to make everything simple. we wanted to make everything simple. we wa nted we wanted to make everything simple. we wanted to make everything simple. we wanted to make everything simple. we wanted to make sure that you get what you're looking for. i think that's why we stand out. why we
8:50 am
haven't been noticed because one of the things we're organically grown. especially when it is a cleaner or someone of of that nature, you need to trust them and it is word of mouth, you trust the person more than you would a generic website? we have been around for seven years now. i don't think it is a generic website and we are a company that backs up a lot and once people know this about delivering consistent services, that's why we survived. don't you compete on price? of course, we do. the price is lower now than it was before the recession. which is also led to a greater demand. so there is more people using cleaners than ten years ago. what does that do to the money that's given to your employees? surely their pay packets are getting squeezed as well? everybody is getting squeezed at the moment and their pay packets as well. we came in with more technology and came in
8:51 am
with ways of being more efficient and it is easy to book by the app now, fantastic services and everything else. it is about being efficient in the industry and that's one of the reasons why we succeeded. your cleaners and your handymen and gardeners, they are not employees of yours, are they? no. what will it mean with brexit because many of them are from around europe, all over europe, most of your staff are from over europe? at first, i mean, everybody was scared. there is no clear real answer and we don't know yet, but on the other side, you have got a lot of brits abroad. we have british people working in bulgaria for us. so it's a whole mix of this and there is people everywhere... but for you running a business. huge uncertainty. it is not necessarily, no. the number of services and growth and the people who want to be organised, a gardener likes to do gardening, not sit on a website and
8:52 am
do this stuff. it is like providing a service to the gardeners so the gardeners can do a greatjob. we want people to do what they're good at. we became that missing link between that. all right, we'll keep an eye on how it goes. thank you very much for coming in. the founder of fantastic services. thank you very much. for the last three years the e—commerce giant amazon has been building itself up in india and with a population of about 1.3 billion people, it's little wonder that the company is investing heavily in the country. shilpa kannan has been speaking to the head of amazon's india operations who explained how the company's $5 billion of investment is helping businesses across the country. every time we find sellers use our warehouses their deficits go down, their cost structure goes down and their sales go up. they use our logistics network and the speed of delivery goes up so the conversion goes up. so all of these results in lower cost of operations and lower prices, but to build all the stuff requires investment. building networks, we have more
8:53 am
than 27 centres in 13 states, 7.5 million cubic feet of space, the largest build out of physical space in india. all this requires investment. a car about which car you drive. a viewer says i can like the golf r very much. mohamed says audi. another viewer says kia is the best make of car. dominic o'connell is with us. we have got to talk about this danish drugs giant making a big uk investment. a story on our website. tell us more? theresa may will be cheered up. it is a big european
8:54 am
company. it is probably the biggest maker of insulin products and it is choosing to put £150 million into research and development into type 2 diabetes in oxford. why? it had pause for thought about the brexit vote and considered going elsewhere, but the research and the collaboration between scientists and the commercial people, that's around here, was the best. that's a real plus for oxford as opposed to cambridge because you would have thought it would have gone to cambridge? quite a big dealfor them. let's look at this story about goldman. goldman put pressure on theresa may to protect city post brexit. it is all part of their bigger picture. today, there is a meeting in frankfurt, the german financial regulator has convened a meeting president biggest banks in the city. it is meant to be about regulation and compliance, but it is going to be a pitch come to frankfurt. if you are going to leave
8:55 am
london, please come to frankfurt. it is not clear how manyjobs will leave the city, but frankfurt is in there pitching as is paris and as is dublin. as is new york? a lot of people think the bigger winners will be new york, it is because businesses will seize to exist. they have move the traders to new york and have economies of scale. what about dublin? it has been chosen by about dublin? it has been chosen by a lot of the asset management firms. jp morgan is moving a lot of people to dublin. interesting. a whole new world. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. thank you for your company. bye—bye. well, it has been a very dry winter
8:56 am
so far. now we are seeing changes this week. milder air pushing up sfrouth thanks to areas of low pressure. so it looks like it will turn more unsettled through the week with spells of rain, something we haven't seen in a while for many. it will turn milder as well, including northern irasias and it will become windy. —— areas and it will become windy. —— areas and it will become windy. today, there is quite a contrast in weather conditions from north to south. northern areas cold, frosty, but bright with sunshine. to the south, it is milder, but here, cloudier with outbreaks of rain. but it has ban cold start again across much of scotland, central and northern areas, it has been cold and frosty with freezing fog around. some of the fog maybe slow to clear, but for many it will be a bright day for scotland with sunshine. the same too for northern england, but bright through the afternoon and for northern ireland, for the rest of the england and wales, it is a cloudier day with outbreaks of rain. certainly across wales and the
8:57 am
south—west of england where we will see hill fog too. more of a breeze and very mild. temperatures in double figures. to recap the temperatures, low to mid—single figures across the north and the north—east of england, but across the south and the south—west, very mild and temperatures making double figures. now that milder air across the south and the west migrates northwards this evening and overnight. rain reaching scotland and northern and eastern england. we could see transient snow across the high ground, elsewhere, we are looking at drizzly end to the night with low cloud and hill fog and very mild in the south—west. less cold across the north. so for tuesday, because of the weather fronts straddling the country, it will be grey. outbreaks of rain for england and wales and for scotland. much wetter day for you here and breezy, but the sunshine will appear across northern ireland later on in the day. temperatures ten celsius in belfast. very mild across the south and the south—west, 11 or 12 celsius and the south—west, 11 or 12 celsius and less cold across scotland too. on wednesday, again, another cloudy
8:58 am
day. outbreaks of rain, windier across the west. it will be mild and temperatures ranging from nine to 11 celsius. for thursday, this area of low pressure is a deep one, it will bring a wet and windy day across the uk and then this deep area of low pressure could bring severe gales to the south—west of the uk by friday. we'll keep you posted. hello. it's monday, it's nine o'clock. i'm victoria derbyshire. welcome to the programme. this programme has discovered that aston villa sacked a scout accused of sexually abusing boys in 1988, but did not go to police. professional player tony brien has waived his right to anonymity to tell us he went to the club to tell them about the abuse he was subjected to from ted langford. that full exclusive interview at 0915. also on the programme: after worldwide backlash against new restrictions on travel to the united states, the white house insist immigration
8:59 am
bans against seven countries aren't directed against muslims. they say it is based on a policy first introduced by president obama. if you are a
9:00 am


info Stream Only

Uploaded by TV Archive on